Kyndryl Q3 Revenue Up 3.1% to $3.86B, EPS Misses by 12.9%
Kyndryl’s Q3 revenue rose 3.1% year-over-year to $3.86 billion, missing the $3.91 billion consensus by 1.38% while EPS came in at $0.52, a 12.85% shortfall to the $0.60 estimate. The IT services firm trades at a P/E of 4.53 and P/S of 0.17, with a 3.25 debt-to-equity ratio and a 1.07 current ratio.
1. Q3 Financial Results
For the quarter ended December 2025, Kyndryl reported revenue of $3.86 billion, up 3.1% from $3.74 billion a year earlier, but 1.38% below the $3.91 billion consensus. EPS was $0.52, falling 12.85% short of the $0.60 estimate, marking the second straight quarterly earnings miss.
2. Valuation Metrics
The company’s price-to-earnings ratio stands at 4.53 and price-to-sales at 0.17, while enterprise value-to-sales is 0.31 and enterprise value-to-operating cash flow is 7.80, indicating a low market valuation relative to peers and moderate cash flow efficiency.
3. Balance Sheet Highlights
Kyndryl’s debt-to-equity ratio of 3.25 signals elevated leverage, though its current ratio of 1.07 suggests sufficient short-term liquidity to cover current liabilities. Investors may view the high leverage as a risk if cash flow growth slows.
4. Management Commentary and Outlook
Management reaffirmed commitment to its multi-year strategic objectives and innovation in IT services. Focus remains on margin improvement and aligning revenue performance with market expectations over the coming quarters.